HTB comment on Private Rent and House Price data from the ONS

16 October 2024

Private Rent and House Prices: October 2024

Alex Upton, Managing Director, Specialist Mortgages, Hampshire Trust Bank

"The rental market is showing no signs of slowing down, with rents continuing to rise across the country. Zoopla’s latest data highlights a 25% drop in available rental homes compared to pre-pandemic levels, while tenant demand remains sky-high. Unsurprisingly, this supply-demand imbalance is driving rents even higher, placing added pressure on tenants.

"Despite the narrative around landlords leaving the market, the data paints a different picture. According to Lomond, the number of tenanted properties listed for sale has fallen by nearly 20% since the end of June. It’s clear that while some landlords may be selling, many are instead adjusting their strategies to maximise yields. At HTB, we’re seeing a continued shift towards higher-yield investments, such as HMOs, which allow landlords to spread risk and generate stronger returns in today’s market.

"With the upcoming Autumn Budget, landlords are watching closely for any further regulatory changes, especially around Capital Gains Tax. However, the long-term view remains: professional landlords are adapting to these challenges, exploring niche opportunities, and staying invested in the sector. Time will tell how government policy unfolds, but for now, the data indicates landlords are finding new ways to thrive rather than exit."